Month-on-Month

On a month-on-month basis, the PPI posted a slight decrement of 0.5 percent in May 2020, the same trend recorded in April 2020 with 0.6 percent and in May 2019 with 0.7 percent. (Table A)

Nine industry groups posted negative monthly growth rates in May 2020 with electrical machinery posting the highest monthly decrement of 5.3 percent. Furthermore, PPI for eight industry groups posted monthly increments while the rest had zero monthly growth rates. (Tables A-2 and 1)

 

 

 

 

DENNIS S. MAPA, Ph.D.
Undersecretary
National Statistician and Civil Registrar General

 

 

 

 

 

 

The Philippine Statistics Authority generates various price indices, one of which is the Producer Price Index (PPI). The PPI is generated from the results of the Producer Price Survey (PPS) which is conducted nationwide. The survey gathers monthly producer prices of selected products included in the market basket of PPI from sample establishments.

 

The PPI is used as a deflator of the Monthly Integrated Survey of Selected Industries (MISSI) to derive indicators for the Volume of Production Index (VoPI) and Volume of Net Sales (VoNSI).

 

PPI utilizes the Paasche-type method of index computation. The weights are computed from the value of production from the Census of Philippine Business and Industry (CPBI) or Annual Survey of Philippine Business and Industry (ASPBI). The weights are updated as soon as new results of the ASPBI or CPBI are available and these are applied at the beginning of each survey year.

 

For the 2020 PPI, the weights of the major industry groups and industry sub-classes were computed based on the final results of the 2017 ASPBI for Manufacturing establishments with total employment of 20 and over.

 

The computation of PPI adopts the following formula:

 

 

 

Year-on-year growth rates are computed by dividing the current month index by the index in the same month of the previous year less 1.

Month-on-month growth rates are computed by dividing the current month index by the previous month’s index less 1.

 

• Imputation and Revision

Imputation is done for sample establishments that are in operation during the reference period but no received response during the release date. Results are revised accordingly when the actual data are received and these revisions are reflected in the next release.

2009 PSIC CODE	INDUSTRY DESCRIPTION
C10	Food manufacturing *
C11	Beverages
C12	Tobacco products
C13	Textiles*
C14, C152	Footwear and wearing apparel
C151	Leather products
C16	Wood and wood products*
C17	Paper and paper products
C18	Printing
C19	Petroleum products*
C20, C21	Chemical products*
C22	Rubber and plastic products*
C23	Non-metallic mineral products*
C24	Basic Metals*
C25	Fabricated metal products
C262, C275, C28, C263, C268	Machinery except electrical*
C261, C264, C27, C29301	Electrical machinery*
C29 except C29301, C30	Transport equipment
C31	Furniture and fixtures
C265, C266, C267, C32	Miscellaneous manufactures